Profit across two products — Caselets Aptitude Question
Profit across two products: A shop sells 200 units of product X at ₹50 each, on which its profit is 20% of the… Answer and worked solution on CodeKairo.
- Topic: Caselets
- Section: Data Interpretation
- Difficulty: Medium
- Time target: 105 seconds
Question
A shop sells 200 units of product X at ₹50 each, on which its profit is 20% of the selling price, and 150 units of product Y at ₹80 each, on which its profit is 25% of the selling price.
What is the shop's total profit?
Options
- ₹4,400
- ₹4,600
- ₹4,800
- ₹5,000
Show the answer and the worked solution
Correct answer: D. ₹5,000
Worked solution
- Revenue from X = 200 × 50 = ₹10,000; profit at 20% = ₹2,000.
- Revenue from Y = 150 × 80 = ₹12,000; profit at 25% = ₹3,000.
- Total profit = 2,000 + 3,000 = ₹5,000.
Answer: ₹5,000.
The idea
Compute each product line separately and add. The two margins apply to different revenues, so they cannot be averaged.
Shortcut. Take 20% on the whole ₹22,000 (₹4,400), then add the extra 5% on Y's ₹12,000 (₹600): ₹5,000.
Common trap. ₹4,400 — applying X's 20% to the combined revenue of ₹22,000, missing the higher 25% margin on Y.